CESTAT Annual Digest (Part-18)

This analyzes all the CESTAT stories published in the year 2023 at taxscan. in The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) allowed the service tax refund claim and held that the grant of refund benefit was not subjected to the compliance of the provisions of Rule 2(l) of CCR. The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the nexus aspect cannot be questioned while dealing with the refund application filed under rule 5 of the (CCR), 2004.

The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that no bar on taking the CENVAT Credit of Service Tax Accumulated for the period when the premises were not registered. The Bombay High Court directed to appeal before the Customs Excise Service Tax Appellate Tribunal (CESTAT) against the anti-dumping duty imposed based on lapsed excise notification. In an ongoing saga surrounding the Goods and Services Tax (GST) on salaries paid to expatriates by Indian subsidiaries of multinational corporations (MNCs), the Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) recently delivered a split verdict on various aspects of these payments.

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) observed that the sub contractor is liable to pay service tax even if the main contractor has discharged service tax on contract value. The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the order that granted refund when order for amendment in bills of entry had attained finality The Delhi High Court has held that no jurisdiction is vested in the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) to hear matters against orders of Commissioner of Appeals on Payments of Duty Drawback. In a major relief to M/s Hero Cycle Ltd, the Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), ruled that no automobile cess to be paid on e-bike when already paid at time of import.

In a major relief to Indian Cricketer, R. Ashwin, the Chennai Bench of the Customs Excise and Service Tax Appellate Tribunal (CESTAT), quashed service tax demand on brand promotion services. The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) confirmed seizure of unaccounted gutka and observed that no mens rea in tax matters as non-compliance with statutory provisions is sufficient.

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), ordered fresh adjudication in the matter of availment of cenvat credit of service tax paid on charges of freight for transportation on gas. The Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal(CESTAT) has held that software supplied as loaded on the medium is to be treated as a sale, not a service. The Kolkata bench of the Customs, Excise & Service Tax Appellate Tribunal(CESTAT) has held that the Mineral/Dressing of ore is not Important to the Formation of Concentrate and upheld the taxability of ore under the Excise Act, 1985.

In a recent case, the Bangalore bench of the Customs, Excise & Service Tax Appellate Tribunal(CESTAT) has held that duty under section 11A(2) of Central Excise Act, 1944 is not imposable as duty has paid before issuance of Show Cause Notice (SCN). The Kolkata bench of the Customs, Excise & Service Tax Appellate Tribunal(CESTAT) upheld the Service Tax on sub-contract work for Map Making undertaken for the main contractor between the Period October 2007 to March 2008 only. The Bangalore bench of the Customs, Excise & Service Tax Appellate Tribunal(CESTAT) has held that duty exemption is allowable under section 5(1A) of the Excise Act, 1944 for the First Clearance of 3500 MTs.

The Chennai bench of the Customs, Excise & Service Tax Appellate Tribunal(CESTAT) dismissed the appeal filed by the revenue department alleging that the commissioner failed to follow the examination of norms prescribed under the CBEC circular for allowing conversion of shipping bill. The Tribunal found that the Commissioner and the review committee have properly followed the norms prescribed under the said Circular. The Kolkata bench of the Customs, Excise & Service Tax Appellate Tribunal(CESTAT) directed the denova adjudication on the Claim of Excise Duty Exemption, as the demand is not Valid as on Turnover of Direct Exports and Export Through Merchant The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the Customs House Agent (CHA) was considered as merely the processing agent of documents for the clearance of goods and not the inspector to weigh the genuineness of the transaction.

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the CENVAT credit of excise duty demand on iron and steel products used in the manufacture of final products. The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that any steel item that has been used for the fabrication of capital goods or inputs is entitled to CENVAT credit in terms of Rule 2(l)/2(k) of the CENVAT Credit Rules (CCR), 2004. The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the denial of CENVAT credit of excise duty on the manufacture of High Carbon Ferro Chrome (HCFC) on the ground of CENVAT credit eligibility.

The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the confiscation of replica firearms on the grounds of non-falling goods under the category of firearms which is defined under the Arms Act,1959. The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that no prohibition or restriction either under the Customs Act,1962 or under the Foreign Trade Policy to import replica firearms. The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that all the mild steel (MS) items for manufacturing of capital goods within the factory premises are eligible for CENVAT Credit.

The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the Customs duty demand on the import of antique finished rifles without verifying the Forensic Science Laboratory (FSL). The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the CENVAT credit of excise duty demand which taken on the capital goods on the ground of absence of sufficient evidence. The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that refund claims filed on account of Service Tax paid by mistake, are not governed by the time limit specified under Section 11B of the Central Excise Act,1944.

The Kolkata bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that when ‘foodstuff’ was transported, the same would be exempted from payment of Service Tax towards GTA expenses. In a major setback to LG Electronics, the New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), rejected the claim of concessional rate of basic customs duty on import of G-watch The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the modification of already existing machinery if installed capacity gets increased by more than 25% is eligible for excise duty exemption under exemption notification. The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the denial of excise duty exemption on clearance of flock fabric on the ground of genuineness of the Indian Institute of Technology (IIT) Roorkee Report.

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the penalty imposed on confiscation of spare parts of goods for non-compliance of post import regulations on the ground of insufficient evidence. The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the mere packaging of rechargeable batteries along with the battery charger does not amount to manufacture. The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that re-enhancement of value for assessment purposes, undertaken when the goods were already assessed and exercise for enhancement of declared value was already undertaken at the time of assessment was patently illegal and unjustified.

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the quashing of the confiscation of silver ornaments and silver boondi on the grounds of the absence of evidence of smuggling. The Kolkata bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the rejection of the declared unit value of imported auto parts on the ground of absence of undervaluation. The Hyderabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) observed that the hiring of vehicles to the Andhra Pradesh State Road and Transport Corporation (APSRTC) is not liable for sales tax, and the tribunal set aside the Demand-Cum Show Cause Notice (SCN).

The Chennai Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT), while granting relief to Ramco Cement, held that CENVAT credits of service tax paid on outward transportation of finished products from the factory to the place of dealers and buyers should not be denied. The Mumbai Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruled that coaching for competitive entrance examinations, provided to students seeking admission in engineering and medical colleges, is exempted from “Training or Coaching Services. ” The Mumbai Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that no service tax is levied on coaching provided to students for competitive entrance examinations to gain admission to engineering and medical colleges.

In a setback to Crompton Greaves Ltd, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), ruled that the transformers constitute ‘inputs’ in terms of rule 2(k) of the Cenvat Credit Rules (CCR), 2004. In a major relief to Forbes Facility Services Pvt. Ltd, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), granted service tax exemption as services were provided to SEZ unit.

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), observed that the subsidy received from sale of mobile handsets purchased from independent vendors is business auxiliary services (BAS), chargeable to service tax. The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), imposed penalty of Rupees 10,000 on the Customs Broker (CB) and observed that the responsibility of CB is to play crucial role in protecting interest of the revenue. The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the availment of the CENVAT credit of excise duty without proper receipt of goods.

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the revocation of customs broker (CB) Licence and observed that livelihood of Customs broker and employees is dependent upon functioning of Customs brokers business. The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the excise duty demand as there was splitting value of modem artificially as value of Hardware and value of the software so as to evade payment of duty. The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), quashed excise duty demand, thereby granting relief to M.

/s, Honda Cars. The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the demand of cenvat credit of service tax paid on outdoor catering service for normal period. The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) granted Cenvat Credit on the supply of inputs by manufacturers of copper.

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), granted Cenvat Credit on discharge of tax liability, thereby granting relief to JSW Steel Ltd, the appellant. The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), observed that the service tax not leviable on ground that the show cause notice (SCN) alleges rendering of commercial or industrial construction service. The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), observed that the wrong claim of excise exemption notification not ground for invoking the extended period of limitation.

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the role of the Customs Broker (CB) was limited to filing a bill of entry based on the description of goods. The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the goods supplied to mega power projects based on International competitive bidding are eligible for excise duty exemption The Punjab and Haryana High Court has reprimanded the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) for virtually allowing a decade-long stay on the pre-deposit to Pelican Tobacco Co. Ltd.

, The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the procedural lapse cannot impede the grant of substantive benefit of Customs Duty. The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the suspension of the Customs Broker license on misdeclaration of balloons on the grounds of absence of involvement. The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the denial of Customs duty exemption on the grounds of procedural lapse.

The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the service taxability of an event cannot depend upon a decision taken by the foreign client. The New Delhi bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the service tax demand on technical inspection and certification agency service on the grounds of service tax exemption. The Chandigarh bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the rejection of the service tax refund claim on grounds of availing of CHA service before the date of export.

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the CENVAT credit of service tax is admissible in refund proceedings in the absence of any proceedings initiated under rule 14 of CCR. The Bangalore Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that the appeal before the tribunal should be abated as per Rule 22 of the CESTAT (Procedure) Rules when the National Law Company Law Tribunal (NCLT) approves the resolution plan. The Delhi bench of CESTAT (Customs, Excise and Service Tax Appellate Tribunal) in its recent verdict emphasized the role of Customs Broker in preventing illegal transactions.

The New Delhi bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the service tax cannot be levied on the amount paid to the USFDA to obtain their approval for the export of drugs. The Chennai Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that the on-site emergency medical service set up at the factory of Saint Gobain Galss India Limited could not fall under Input service. The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) upheld the sanctioning of service tax rebate claim on the advisory service on the grounds of refund eligibility.

The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the denial of the CENVAT credit on information technologies software services on the grounds of credit eligibility The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that canned pineapple slices are classifiable under CTH 0804, Attracts 30% customs Duty. The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the excise duty demand in favor of Suzuki Motorcycle and held that no post-delivery inspection charges would be included in the assessable value for purposes of paying excise duty. The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) observed that Iron Ore Fines are exempted from payment of Customs Duty.

The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) granted relief to the Tata AIG by quashing the denial of service tax credit of approximately 7 crores on the grounds of CENVAT credit eligibility. The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) granted relief to the Tata AIG by quashing the denial of service tax credit of approximately 7 crores on the grounds of CENVAT credit eligibility. The Chandigarh bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) granted relief to Suzuki Motors by quashing the excise duty demand on after-sale services charges on the grounds of PDI exemption.

The Bangalore Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that the appeal would abate once resolution plans are approved by the National Company Law Tribunal. Therefore, the tribunal rejects Patanjali Food’s appeal. The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the import of steel balls is classifiable under the category of ball or roller bearings.

The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the CENVAT credit of service tax cannot be denied at the recipient’s end without opening an assessment at the service provider’s end. The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the Customs duty on the import of steel balls on the grounds of improper classification. The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the sale invoice can be either issued by a company located in a third country or an ASEAN India Free Trade Agreement (AIFTA) exporter The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the rejection of the benefit of a preferential trade agreement on steaming non-coking coal import on the grounds of Customs duty benefit eligibility The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the service tax liability cannot be demandable only by calculating value without examination of activities and transactions.

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed re-adjudication for recovery of CENVAT credit of excise duty availed on the common input services attributable to exempted activity or trading. Appeal can be Abated as per Rule 22 of CESTAT Procedure Rules w. e.

f date of approval of resolution plan by NCLT: CESTAT The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)allowed to submit documents as assesee failed to subnit the same due to covid -19 since quantification of service tax under work contract service without extending benefit of abatement. The appellant could not obtain such documents due to the outbreak of the Covid-19 pandemic. They have now produced filed miscellaneous application, and produced documents.

A two member bench comprising of Sulekha Beevi C. S. , Member (J) and Vasa Seshagiri Rao ,Member (T) held that the appellant has to be given an opportunity to put their defence on the basis of the documents furnished by them.

While allowing the appeal, the CESTAT set aside the impugned order and remanded the matter to the adjudicating authority for de novo adjudication. The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), observed that service tax should be levied on actual transportation charges not on provision made for transportation charges. A Two-Member Bench comprising Ashok Jindal, Member (Judicial) and K.

Anpazhakan, Member (Technical) observed that “The demand of Rs. 5,98,625/-, has been confirmed on the basis of provision made by the transportation charges from the transporter and later on the transporter sent the invoices of less amount on which the service tax is paid to them. ” In those circumstances, the provision made by the appellant is adjusted at the end of the year and the said entry has been taken in the corresponding year.

In those circumstances, we hold that the appellant is required to pay service tax on actual transportation charges not on the provision made for transportation charges. Therefore, the said demand is also not sustainable” the Bench noted. The Chennai bench of the Customs Excise & service tax appellate tribunal(CESTAT) has held that service Tax is not leviable on consideration and booking of tickets for domestic travel.

A two member bench comprising Mr. P. Dinesha, Member (judicial) and Mr.

M. Ajit Kumar,(Technical) observed that the appellant is not a member of or agent of IATA and that it is not the case of the Revenue that the appellant had earned any commission from IATA or any other airlines when it sold or traded in air tickets. Further held that “the demand of Service Tax on the consideration and for booking of tickets in respect of domestic travel is not a taxable event and the direction of the Commissioner (Appeals) cannot sustain.

” The CESTAT set aside this part of the impugned order, by holding that the appellant is not liable to pay Service Tax on the mark-up or margin earned for booking tickets with regard to domestic travels © 2020 Taxscan © 2020 Taxscan.